ISLAMABAD: Finance Minister Shaukat Tarin has ruled out any disagreement between Pakistan and International Monetary Fund (IMF) and said the Extended Fund Facility (EFF) programme would continue as both wanted it to move forward.
“Both the Government of Pakistan and the IMF want to continue the programme,” the minister said while talking to a private news channel. The minister said there was no danger of Pakistan coming out of the programme or its breakdown.
He said both sides would evolve an understanding, as the way Pakistan had chosen for sustainable growth would eventually convince the IMF. He said the government had asked the Fund to check the country’s economic performance for a couple of months and observe the outcome of the policies announced in the budget.
He said the both the IMF and the government were desirous of structural reforms. Pakistan, however, was working on the reforms keeping in view the ground realities, while the Fund wanted the same instantly.
He said the IMF wanted to make some sectors of the economy, including power, financially viable and Pakistan’s target was also the same but it had adopted a different path.
He said the Fund also desired to enhance the revenues by removing exemptions. Pakistan, however, would utilize technology to broaden the tax-base instead of burdening the existing taxpayers, he added. The minister said the way being pursued by the government would lead to economic stabilization and sustainable growth as desired by the Fund.
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He said the IMF had agreed to continue discussions and monitor the results of the policies adopted by the government for two or three months. The 6th IMF review scheduled in July would now be held two months later, he added. The minister denied the accusations and claims made by a political party, saying the revenue target of Rs 5.8 trillion was achievable.
He said the Rs 5.5 trillion target for the FY2020-21 could not be achieved as the base was just Rs 3,700 billion with economy growing on 2 percent but the next year’s target was logically achievable with the base of Rs 4,700 billion.
He also denied the claims by the opposition parties that the budget presented in the parliament for the fiscal year 2022-21 offered nothing to the poor. He said the opposition was afraid of the government ‘bottom-up approach’, which would lift the poor from poverty and they would not have to rely on the trickle-down effect.
He said the last PML-N government had done nothing to improve the exports, which remained stagnant and exports during the PPP regime had stood at $25 billion.
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He said the incumbent PTI government had taken measures to take exports to $30 billion during the upcoming fiscal year and to $40 billion next year. He added the PTI government announced many incentives for the industry, including textile, whereas new avenues were explored to promote exports.
Regarding inflation, Tarin said unfortunately no attention was given to the agriculture sector for the last decade and resultantly the country became a food importer. As the food prices in international market at present were the highest in the last decade, the prices in Pakistan also hiked, he added.
Tarin said it was imperative to promote the agriculture sector to control inflation and hence it was given priority in the budget. The finance minister challenged the PML-N leaders to come and debate on the budget as he was ready to remove their doubts. “The budget had accommodated all. It had something for every segment of the society,” he added.
